Federal-Mogul acquires chassis operations of Affinia Group

Federal-Mogul Corp. announced today it entered into a definitive agreement to acquire the chassis components business of Ann Arbor-based Affinia Group Inc.

Terms of the transaction were not disclosed and the deal is subject to regulatory approvals.

Federal-Mogul will take control of Affinia’s global chassis operations based in McHenry, Ill., in the United States and Canada but specific locations are yet to be finalized, Jim Burke, Federal-Mogul’s director of communications, said in an email.

The transaction will include around 350 Affinia employees, Burke said.

Affinia president and CEO Terry McCormack said the group will use the proceeds of the sale to pay down debt.

The deal marks the second acquisition for the Southfield-based Federal-Mogul this month.

On Jan. 8, the supplier announced the acquisition of Morristown, N.J.-based Honeywell International Inc.’s automotive and industrial brake friction business for $155 million. The Germany-based unit employs 2,000 worldwide with plants in China and Romania.

The brake business supplies pads and components to automakers and the aftermarket.

Both deals are expected to close in the second half of 2014.

Federal-Mogul (NASDAQ: FDML) shares are up more than 84 percent over the past six months to $19.68 per share in overnight trading.

The Carl Icahn-controlled company finished the third quarter of 2013, ending Sept. 30, with a net income of $38 million on revenue of $1.69 billion.